Use the Excel application to calculate how much money you will save. Here's an example of how to set up a savings calculator in Excel.
Preparation of a savings calculator spreadsheet
Use this free calculator to do that.
1. Open Excel and make four rows, which are periodic savings, times per year, number of years, interest rate, total number of deposits, and estimated savings.
2. Enter your data in the cells corresponding to the headings: periodic savings, times per year, number of years and interest rate.
3. Calculate the total number of deposits. It is simply calculated by multiplying times per year and no. of years.
Inserting savings formula
4. Now calculate estimated savings using the FV function in Excel in the cell corresponding to estimated savings. The formula goes as follows:
=FV(interest rate/times per year, total number of deposits, periodic savings)*-1
The full formula of the Saving Calculator is:
=FV(B7/B5,B9,B4)*-1
Here you can download this saving calculator.
Note: You can extend this example by adding additional rows for each category of expenses, or by adding a formula to calculate your savings over multiple months or years. You can also use charts or pivot tables to visualize your savings data and gain insights into your spending habits.